Posted on: 23rd Jun, 2009 07:08 pm
my husband is in the construction business and as everyone knows business has almost come to a halt. we are not behind on our mortgage but did file chapter 13 bankruptcy last year. our house is not included in the bankruptcy. we received a letter from a loan modification company recently. they want $900 processing fee and $1400 mitigation fee to mitigate with our mortgage company. their reasoning behind the mortgage modification fees is that they can get us a better deal than we can. number one, i am wondering if this is legitimate. number two, in order to pay them their fee i will have to skip a house payment. they told me they thought they could get my payment lowered by at least $400. i'm not sure what skipping a house payment will do since we are in bankruptcy so i plan on calling my attorney tomorrow. anyone have any suggestions?
cherylsmith98,
Welcome to mortgagefit...
Are the accrediated by any of your state governing body.First check out that if they are not atleast check out that they are member of BBB.
There are various fraudulent activites in these loan modification industry. best advice is to go for loan modification on our own.
keep in touch........
Welcome to mortgagefit...
Are the accrediated by any of your state governing body.First check out that if they are not atleast check out that they are member of BBB.
There are various fraudulent activites in these loan modification industry. best advice is to go for loan modification on our own.
keep in touch........
Hi Cheryl,
I'd advice you not to pay any mortgage modification fees. You never know whether they are a legitimate company and whether they can actually reduce your monthly mortgage payments. With the number of mortgage related frauds increasing by the day, it will be wise not to waste your hard-earned money to pay a loan modification company, whose credibility you are not sure of. Moreover, if you skip your mortgage payments, it will affect your credit score. If you have been making your payments faithfully under the chapter 13 plan, I believe you will not want to hurt your credit by skipping a house payment. Instead, you should check out with your lender if they can modify your loan to help you afford your payments in a better way.
I'd advice you not to pay any mortgage modification fees. You never know whether they are a legitimate company and whether they can actually reduce your monthly mortgage payments. With the number of mortgage related frauds increasing by the day, it will be wise not to waste your hard-earned money to pay a loan modification company, whose credibility you are not sure of. Moreover, if you skip your mortgage payments, it will affect your credit score. If you have been making your payments faithfully under the chapter 13 plan, I believe you will not want to hurt your credit by skipping a house payment. Instead, you should check out with your lender if they can modify your loan to help you afford your payments in a better way.
Beware of scams! Solutions that sound to simple or too good to be true usually are. If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty
it's better not to go ahead with any loan modification company and their offer without researching about their credibility. in the present market situation, lots of people have been scammed by these loan modification companies who take money from the borrowers but can hardly do anything to modify their loans.
in my opinion, it would be better if you could contact your lender and his loss mitigation department. they can be of better help to you and would only charge you money if they can give you a loan modification.
in my opinion, it would be better if you could contact your lender and his loss mitigation department. they can be of better help to you and would only charge you money if they can give you a loan modification.
and since it hasn't been discussed in this thread, i'll chime in with my usual request that you search the hud.gov website and locate a counselor in your area who can assist you in seeking your modification. you'll find there are plentiful counselors who will help you for no charge.
